Hiten Dalal surrenders before special court

Our Markets Bureau

Mumbai, Aug 8: Hiten Dalal finally surrendered before a special court on Wednesday after he was refused more time and was taken to custody immediately thereafter. Thus, almost 10 years after the stocks scam rocked the country in 1992, Dalal, the prime accused in the Rs 78-crore Standard Chartered Bank fraud case was finally convicted on Wednesday.

Dalal, thus, becomes the first broker to undergo conviction in cases concerning the multi-crore scam which rocked the stock exchanges across the country 10 years ago. The Supreme Court had earlier upheld the one-year sentence imposed on Dalal by a special court.

According to sources, some action is foreseen on the front of the securities scam in the days to come as the special court is expected to speed up the matter.

Some more accused including the prime accused Harshad Mehta is planning to move the Supreme Court in connection with the earlier judgment of special court.

Rejecting Dalal’s plea for more time to surrender, Justice DK Trivedi ordered police to take him into custody but allowed the broker to remain in the court till 4.45 PM to attend another scam case in which he is facing trial.

On July 25 this year, the special court had granted him time to surrender before till today (Wednesday). Dalal appeared before the judge this morning and his counsel RD Ovelekar moved an application seeking more time to surrender on grounds that he was facing trial in another case.

The court was also informed that Dalal had filed a petition in the apex court seeking review of the earlier Supreme Court judgement which had upheld his conviction. Since the review petition was not notified, he may be allowed some more time to surrender, Dalal pleaded through his counsel.

Public prosecutor Kiran kapoor opposed Dalal’s plea on the ground that although there was no provision in criminal procedure code (CRPC), the court had taken a lenient view on the last occasion by deferring his arrest by two weeks.

Justice Trivedi held that the court could seek production of Dalal in other scam cases whenever it was necessary and there was no need to defer his arrest.

Dalal had moved the special court on July 24 seeking two weeks’ time to surrender in view of the Supreme Court confirming his conviction in a case relating to the securities scam of 1991.

On July 11, the Supreme Court had upheld a 1993 judgement of a Mumbai special court sentencing Dalal to undergo one year jail term and pay fine of Rs 1 lakh for defrauding Standard Chartered Bank of over Rs 78 crore in connection with transactions in shares during the securities scam in 1991.

On April 30, 1993, special judge SN Variava, who has now moved to Supreme Court, held Dalal guilty under section 138 of Negotiable Instruments Act and convicted him.

The complaint against Dalal was filed by the bank through its director Badrinath Banerjee alleging that four cheques given by Dalal to the bank were dishonoured.Dalal once again moved the special court on Wednesday (today) with an application seeking more time to surrender. The broker pleaded that he was facing trial in yet another case which had reached a crucial stage as witnesses were being examined against him.